The European Commission announced unprecedented fines against tech giants Apple and Meta for non-compliance with the Digital Markets Act (DMA), legislation designed to curb anti-competitive practices in the EU's digital markets. Apple was fined €500 million (approximately US$570 million) over restrictions imposed on App Store developers — known as "anti-steering" rules — which prevented them from promoting alternative payment and subscription methods outside Apple's ecosystem. Meta was fined €200 million (approximately US$230 million) in connection with its "pay or consent" model, which forces Facebook and Instagram users to either accept the use of their personal data for advertising or pay to opt out of ads.

Both companies have 60 days to comply with the rulings, or face periodic penalty payments. Apple must remove the restrictions on developers and allow free promotion of third-party services. Meta, in turn, was ordered to offer less restrictive alternatives for the use of its users' data. Both companies have announced plans to appeal the decisions, arguing that they had already complied with legal requirements and that the new measures would undermine user experience and security.

The DMA entered into force in May 2023 and sets strict rules for digital platforms classified as "gatekeepers" — companies with significant market influence, such as Apple, Meta, Alphabet (Google), Amazon, ByteDance, and Microsoft. The law provides for sanctions of up to 10% of global annual revenue, rising to 20% in cases of repeat infringement, and aims to ensure greater consumer choice and fair competition for smaller businesses.

The Commission emphasized that Apple's and Meta's practices stripped users of their right to choose how their data is used, undermining competition in the tech sector. Regulators stressed that the legislation aims to provide greater transparency and control for consumers and businesses in Europe's digital environment. Investigations into Apple and Meta, announced in March 2024, are part of a broader effort that also includes similar proceedings against Google for self-preferencing in search results and the app marketplace.

This post was translated and summarized from its original version using ChatGPT version 4o, with human review.

Source: The Verge